Kinder Morgan Canada Ltd. is expected to raise C$1.75 billion ($1.3 billion) in its initial public offering after setting the price of its shares at C$17 each, below the previous range, according to terms of the deal.
Kinder Morgan Inc. is spinning out the subsidiary, which includes the Trans Mountain pipeline system among other assets. Houston-based Kinder Morgan increased the number of shares it will sell in the IPO to about 102.9 million, up from as many as 92.1 previously, and lowered the price from an earlier range of C$19 to C$22. The proceeds of the deal are unchanged due to the additional shares on offer.
As a result, Kinder Morgan will retain about 70 percent of Kinder Morgan Canada after the share sale, down from about 75 percent as previously planned, according to the terms.
It’s the largest Canadian IPO since Hydro One Ltd. raised C$1.83 billion in its debut in October 2015. Kinder Morgan Canada is expected to start trading next week in Toronto. The terms are due to be officially set on Thursday.